Financial Analysis: BEST (NYSE:BEST) vs. ZTO Express (Cayman) (NYSE:ZTO)
BEST (NYSE:BEST) and ZTO Express (Cayman) (NYSE:ZTO) are both transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, institutional ownership, analyst recommendations, profitability, risk and earnings.
Earnings and Valuation
This table compares BEST and ZTO Express (Cayman)’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|BEST||$4.07 billion||0.38||-$73.88 million||($0.21)||-19.81|
|ZTO Express (Cayman)||$2.56 billion||3.78||$637.48 million||$0.77||24.81|
Insider and Institutional Ownership
20.0% of BEST shares are held by institutional investors. Comparatively, 38.9% of ZTO Express (Cayman) shares are held by institutional investors. 41.7% of BEST shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Volatility & Risk
BEST has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, ZTO Express (Cayman) has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.
This table compares BEST and ZTO Express (Cayman)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|ZTO Express (Cayman)||24.23%||13.28%||11.51%|
This is a breakdown of current recommendations and price targets for BEST and ZTO Express (Cayman), as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|ZTO Express (Cayman)||0||0||1||0||3.00|
BEST currently has a consensus price target of $6.50, suggesting a potential upside of 56.25%. Given BEST’s higher possible upside, analysts plainly believe BEST is more favorable than ZTO Express (Cayman).
ZTO Express (Cayman) beats BEST on 9 of the 13 factors compared between the two stocks.
BEST Company Profile
BEST Inc. operates as a smart supply chain service provider in the People's Republic of China. Its proprietary technology platform enables its ecosystem participants to operate their businesses through various SaaS-based applications. The company applies its technologies to a range of applications, such as network and route optimization, swap bodies, sorting line automation, smart warehouses, and store management. It offers integrated services and solutions across the supply chain, including warehouse management, order fulfillment, express delivery, freight, and other services for multinational and corporate customers, as well as small and medium enterprises. The company also provides express delivery services; and door-to-door integrated cross-border supply chain services to and from China, including international express, less-than-truckload, fulfillment, reverse logistics, and freight forwarding through its network, and transportation and warehouse partners. In addition, it operates real-time bidding platform to source truckload capacity from independent transportation service providers and agents; and offers online merchandise sourcing and store management services for convenience stores, as well as B2C services, such as parcel pick-up and drop-off, and bill payment services. Further, BEST Inc. provides various value-added services, including customized financial services, including fleet and equipment finance leases; and centralized sourcing of products and services, such as bulk procurement of trucks and accessories. The company was founded in 2007 and is headquartered in Hangzhou, the People's Republic of China.
ZTO Express (Cayman) Company Profile
ZTO Express (Cayman) Inc. provides express delivery and other value-added logistics services in the People's Republic of China. The company offers delivery services for e-commerce and traditional merchants, and other express service users. As of December 31, 2017, it operated a fleet of approximately 3,600 self-owned trucks. ZTO Express (Cayman) Inc. was founded in 2009 and is headquartered in Shanghai, the People's Republic of China.
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